Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on August 15, 2025, under Item 7.01 Regulation FD Disclosure. The report provides supplemental credit performance statistics for U.S. Consumer and U.S. Small Business Card Member loans held for investment for the months ended May 31, June 30, and July 31, 2025. It also includes data for the American Express Credit Account Master Trust (Lending Trust) for the same periods.
Key Financial Metrics
U.S. Consumer Card Member Loans (July 31, 2025):
- Total loans: $93.7 billion
- 30 days past due: 1.3% of total
- Average loans: $93.2 billion
- Net write-off rate (principal only): 2.0%
U.S. Small Business Card Member Loans (July 31, 2025):
- Total loans: $30.5 billion
- 30 days past due: 1.6% of total
- Average loans: $30.3 billion
- Net write-off rate (principal only): 2.7%
Total Card Member Loans Held for Investment: $124.2 billion as of July 31, 2025.
Lending Trust Performance (July 2025):
- Ending total principal balance: $25.4 billion
- Defaulted amount: $0.04 billion
- Annualized default rate (net of recoveries): 1.1%
- Total 30+ days delinquent: $0.2 billion
Material Changes Versus Prior Periods
U.S. Consumer Portfolio: Total loans increased from $92.0 billion in May to $93.7 billion in July. The net write-off rate improved slightly from 2.1% in May and June to 2.0% in July. The 30-day delinquency rate remained stable at 1.3% across all three months.
U.S. Small Business Portfolio: Total loans fluctuated, rising from $32.0 billion in May to $30.5 billion in July. The net write-off rate increased from 2.4% in May to 2.7% in July. The 30-day delinquency rate rose slightly from 1.5% in May to 1.6% in June and July.
Lending Trust: The annualized default rate improved from 1.3% in May and June to 1.1% in July. The ending principal balance remained relatively flat between $25.3 billion and $25.4 billion.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond standard disclosures. The document notes that credit performance statistics may vary month-to-month due to factors such as the mix and vintage of loans, calculation mechanics (end-of-period vs. average balances), seasonality, and the timing of information received from third parties. It explicitly states that loans securitized through the Lending Trust do not possess identical characteristics to the total loan portfolios.
Important Facts for Investors to Verify
- Verify the trend in net write-off rates for the Small Business segment, which increased to 2.7% in July.
- Confirm the stability of the 30-day delinquency rate at 1.3% for the Consumer segment despite loan growth.
- Review the discrepancy in calculation methodologies between the Company's reported statistics (average balances) and the Lending Trust's Form 10-D (end-of-period balances).
- Monitor the Lending Trust's annualized default rate improvement to 1.1% and its impact on overall credit quality.